Economics i=15% n=7 Initial Cost (A)100 (B)60 (C)80 Uniform Annual Benefit (A)26 (B)15 (C)17 a) Payback period : b) B/C: c) The best alternative based on AB/AC?

Q: Two equipment investments are estimated as follows:Which investment has the better discounted…

A: Firstly we shall calculate the Present value of Cash flows. Then, we shall calculate the Cumulative…

Q: c) Does every loan, which consists of an initial outlay followed by a sequence of re- ceipts, have a…

A: A loan can be defined as the financial support received from the lender by the borrower. In…

Q: Q9. Find the NPV, payback period and profit index for both projects, if the discountrate is 11%:…

A: Capital budgeting indicates the evaluation of the profitability of possible investments and projects…

Q: Question 2: Calculate the payback period and the NPV using a discount rate of 8% Inflow/ Outflow…

A: Payback period and NPV of the project is calculated in excel below

Q: Q1 project has the following costs and benefits. What is the pay Costs (CU) year 0 1 2 3-10 year…

A: The payback period is the time in which the initial cost of the project is recovered. It ignores the…

Q: the Sandra Company current year: 500,000 Current service cost Interest expense on PBO Interest…

A: FV (Fair value) of plan assets refers to the funds fair value which is invested to pay the…

Q: (iii) M/S Azra and Co. analyzed a project as follow: 05 NPV is Rs. 57631 at 24% discount rate NPV…

A: Internal rate of return is net present value is zero.

Q: Estimate the MIRR of the following project considering a 12% discount rate Year CF -1,200 1. 500 600…

A: Correct answer is option (d) 20%.

Q: Use the information below to answer the following questions. Present and future value tables of $1…

A: In this we have to calculate the present value FACTOR.

Q: If the closing reserve of an entity is OMR 35000 and the Opening reserve is OMR 48000 then how much…

A: Current profit = Closing reserve - Opening reserve

Q: Ferred variable annuity except:

A: Deferred  annuity  is most popular variable annuity. first time variable annuity introduce in year…

Q: What is the NPV of the project if the discount rate is 7%? Answer with two decimals. Project A…

A: Solution : Given , Discount rate = 7% Year Cash inflow  = 1 PVF@7% = 2 Present value of cash…

Q: No.5. Please use the formula on the 2nd pic. STEP BY STEP SOLUTION PLEASE, I CANNOT UNDERSTAND EXCEL

A: Annuity means a series of finite number of payments which are the same in size and occur in equal…

Q: Initial investmen Discount rate Net Profit 30,000,000 10% 12,937,000

A: Net Present Value (NPV) is a financial metric that measures the difference between the present value…

Q: The minimum transfer price equals​ ________   A. opportunity costs times​ 125% plus the additional…

A: ANSWER Transfer price is the amount charged to transfer of goods or service between one division to…

Q: For the four revenue alternatives below, use the ROR method results to answer the question below…

A: Incremental IRR rule:If incremental IRR is greater than or equal to MARR, then select project with…

Q: Compare two alternatives using i = 10% Alternative X Alternative Y First cost, $ M&O costs, $/year…

A: The projects can be evaluated based on various capital budgeting techniques. However, the decision…

Q: What is the price implied for an asset providing $100 in state 1 and $50 in state 2?

A: price implied can be calculated using the formula: Price Implied = future value in state 1 x Risk -…

Q: Evaluate the two alternatives A and B and decide the economic justified alternative using: Present…

A: Investment appraisal is the branch of financial management which deals with evaluating potential…

Q: If the Contribution is 50,000, EBIT is 30,000 and interest is 10,000 calculate Combined Leverage ?…

A: Combined leverage = contribution / ( EBIT - interest )

Q: rate of return method. Incremental Rate of Return, % Initial Alternative Investment, $ versus DN, %…

A: Incremental rate of return also known as internal rate of return method. IRR is a discounting…

Q: Compute for the benefit ratio of the following projects. Project cost Gross income Operating cost…

A: Introduction: The benefit-cost ratio (BCR) is a financial or qualitative indicator that depicts the…

Q: Question 2 Compute the BC ratio at i 10%, for the following project and justify if you selected it…

A: Benefit-Cost ratio is the present value of benefits to the present value of cost and for to be…

Q: Two alternatives are being considered. If the MARR is 7% which alternative should be chosen using…

A: The Incremental Internal Rate of Return (IRR) is a financial metric used to evaluate the relative…

Q: None

A: In excel NPV will be computed using the NPV function. The syntax is:  NPV(rate, value 1, value…

Q: System A: the NPV -541,843 is used by discount rate. I don't understand NPV of project divided by…

A: NPV is net present value is the difference between the present value of cash flow and initial…

Q: (3) At what discount rate do the profiles cross? NPV of Projects WACC L S $18.78 $19.98 0% 18.78…

A: Step 1:Step 2: Step 3: Step 4:

Q: Five alternatives are being evaluated by the incremental rate of return method. Incremental Rate of…

A: The IRR (internal rate of return ) and the MARR (minimum acceptable rate of return) means the rates…

Q: The NPV of two mutually exclusive projects considering different discount rates are given as…

A: NPV is the net present value. This is the dollar return that the project makes. If the NPV is…

Q: A longleaf pine investment generated the following Net Present Values (NPV's) at selected Minimum…

A: Internal rate of return (IRR) is the discounting rate at which the net present value of all cash…

Q: Using the following expected interest payments, cost of debt = 5%, and tax-rate = 21%, calculate the…

A: Given information,YearExpected Interest15023532041050Cost of debt: Tax rate: To calculate,Tax shield

Q: 15% n=7 Initial Cost (A)100 (B)60 (C)80 Uniform Annual Benefit (A)26 (B)15 (C)17 a)…

A: Budget is the process by which a firm assesses truly massive projects or investments.A new plant's…

Q: Use the graph below to answer the following two statements. (2)   Project _________ has the higher…

A: IRR is the rate at which NPV of the project is zero

Q: (Banefits) $30 $ 20 $30 $ 20 $5 $5 $8 $8 $10 $10 (Recurring costs) (Investment)

A: Concept of Benefit Cost Ratio In the benefit cost ratio analysis for a project economical viability,…

Q: 3. Answer the following questions based on the information below Current credit policy(n/a) Proposed…

A: Note: As per the policy we are supposed to solve the first three sub-parts only. Kindly repost the…

Q: Present value calculation Without referring to the preprogrammed function on your financial…

A: In this question, we are required to determine the present value of $1, to be received in 6 years…

Q: Year Benefit Cost 0 0 100 1 50 10 2 55 10 3 58 10 Please answer the following questions about the…

A: Given information:

Q: Calculate discounted payback period of Project A and B Calculate net present value of A and B Which…

A: solution cash flows given year cash flow A cash flow B 0 -150000 -150000 1…

Q: 4) T The one The

A: Net present value is the difference between present value of cash inflows and present value of cash…

Q: Below are the NPVs of a particular investment at two discount rates: At 5%, NPV = $9,500 At 8%,…

A: IRR is the rate of return at which the net present value is 0. IRR is the minimum return a project…

Q: NPV versus IRR (LO1, 5) Consider the following two mutually exclusive projects: Year 0 Cash Flow (X)…

A: NPV = ∑CFt  / (1+r)tCalculate the NPV for both projects X and Y at different discount rates:Discount…

Q: Majestic Aircraft Corporation is considering purchasing composite wing fixtures for the assembly of…

A: Standard Disclaimers“Since you have asked multiple question, we will solve the first question for…

Q: 14. A project has estimated the following benefit possibilities for the year: Benefits ($)…

A:

Q: 4. Compare between the next two alternatives by using and A(B – D)/C ratio (consider i = 10%)…

A: Using i=10% and ∆B-D/∆C ratio, one of the alternatives has to be selected. AW of…

Q: Vaterways puts much emphasis on cash flow when it plans for capital investments. The company chose…

A: Introduction Net Present Value NPV: One of the most preferred techniques of Capital Budgeting, which…

Q: Determine the DCPB based on a MARR rate of 8.0% Determine the IRR

A: Discounted payback period means discounting the cashflows to know when the initial investment period…

Q: benefit

A: Introduction: Incremental Benefit – Cost Analysis: It is the method which helps to determine amount…

Q: ent unir payment A 24000 18000 12000 6000 good 1 2 4 3.

A: When the present value of unequal cash flows is divided by the present value annuity factor it is…